Meat Industry Action Group

& Meat Industry Restructuring Group

PRESS RELEASE

For immediate use

22 August 2007

Global co-ordination to improve lamb prices

Farmers must stick together if there is to be long-term improvement in lamb prices - that is the message from outspoken farmers John Gregan, Mark Crawford and their respective groups.

Mr Gregan, of the South Canterbury-based Meat Industry Restructuring Group, said with the falling dollar and a reduced supply of lamb, it could be all too easy for farmer apathy to take hold.

“Farmers cannot afford to sit back and relax. The likely increase in lamb price this season will only be short-term unless we, as farmers, continue to demand change within the industry.

“It is important that farmers stick together and show their meat companies a united front.”

With this in mind, members of MIRG have decided to join forces with Southland’s Meat Industry Action Group.

Mr Crawford, of MIAG, said the addition of the MIRG members would be a huge boost for his group.

The new group would encompass farmers from throughout the South Island and would bring together a greater selection of industry experience and ideas.

While both groups have been awaiting the PriceWaterhouseCooper report on PPCS and Alliance Group, they are keen to push forward their ideas on global co-ordination of the meat industry.

Mr Crawford said that an integrated, and global, approach to the marketing and procurement of red meat would be an ideal long-term outcome for the industry.

New Zealand lamb producers are in the enviable position of producing 75% of the world’s traded lamb yet the current structure of its industry means farmers are not seeing the benefits of being in such a strong position, Mr Gregan said.

“The co-ordinated procuring and marketing of lamb that a global meat company would be able to achieve would ensure better returns. And, because the company will be a New Zealand farmer-owned co-operative the returns will come back to the farmers,” he said.

Mr Crawford agreed, saying: “We need a modern co-operative with modern marketing and procurement policies and it must be a co-operative that farmers can trust and rely on.

“Most farmers will tell you that, at present, we have neither.”

Mark Crawford has been appointed Chairman of MIAG, while John Gregan holds the position of Vice-Chairman.

Now South Island-wide, the group also has plans to expand further.

“We will be looking to get farmers from throughout the country on board. This will be their opportunity to make a positive change in the meat industry.

“Farmer support is essential if we are to make it happen. And, we must, because the status quo is just not an option.”

Ends

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